Classification of service

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Whether AMC contract for repairs to AC/Computer or one time repairs to any plant or machinery or asset falls under category of Works contracts or Management,Repairs or mains. services as one has to pay tax by reverse charge on works contract service.

Replies (2)

It falls under the service portion of works contract.

To be paid as per reverse charge mechanism.

It largely depend on your contract.If while providing the service there is also an element of transfer of goods on which sale tax/VAT is payable then it is a work contract otherwise it is plain repair or maintainence contract/service.

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